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DELPHI DEAL GIVES LEAR LION'S SHARE OF GM SEATING BUSINESS FOR NOW.
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Automotive News
- Article date:
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September 28, 1998
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Copyright informationCOPYRIGHT 1998 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Lear Corp.'s purchase of General Motors' seating business for $250 million may have been more about protecting its GM business than a coup for shareholders, analysts say.
Lear did not pay too much for GM's Delphi Automotive Systems worldwide seating business, and can expect a decent return on its investment, said Eric Goldstein, an analyst with Bear, Stearns & Co.
But, he said, the company's biggest achievement was to head off a competitor. "From a strategic perspective, the major accomplishment here is that Lear appears to have prevented a competitor from becoming a big player in seats," Goldstein said.
Seating suppliers Magna International Inc. of Aurora, Ontario, and ...
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DELPHI DEAL GIVES LEAR LION'S SHARE OF GM SEATING BUSINESS FOR NOW
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